When a federal employee or annuitant dies, annuity benefits may be payable to a

surviving spouse.

This column discusses the surviving annuity benefits payable to surviving

spouses of employees covered by CSRS and CSRS-Offset. The first part of the

column discusses survivor annuity benefits for spouses of deceased employees;

the second part of the column discusses survivor annuity benefits for spouses of

deceased annuitants.

Spousal Survivor Annuity - Death of an Employee

In general, in order for survivor annuity benefits to be payable, a deceased

employee must have: (1) completed at least 18 months of creditable civilian

service; and (2) died while subject to CSRS deductions. An individual's death is

considered as a "death in service" and survivor annuity benefits are payable if:

(1) the individual was an applicant for disability retirement but died before

final separation; or (2) the individual was an applicant for immediate

retirement but died before the commencing date of the annuity, even though

separation had occurred.

Except for members of Congress, an individual is not considered to be either

a retiree or an employee if he or she separates from service and dies either

before applying for retirement or before the commencing date of a deferred

annuity. In that case, only a lump sum payment of the deceased employee's CSRS

contributions is payable to the surviving spouse.

For a survivor annuity to be payable to a spouse, the spouse must meet one of

the following requirements: (1) the surviving spouse and the employee must have

been married for at least nine months. The aggregate time of all marriages

between the spouse and the employee should be used to determine the total length

of marriage; and (2) a child was born from this union. The child could have been

born posthumously to the deceased employee and spouse, or the child was born

prior to the marriage; or (3) the death of the employee was accidental. There

also can be no court order awarding the total survivor annuity to a former

spouse.

If a former spouse were awarded only a portion of the total survivor annuity,

the surviving spouse will receive the remainder. If a court order awards the

total survivor annuity to a former spouse, then the surviving spouse will not

receive anything.

A spousal survivor annuity is equal to 55 percent of a CSRS annuity, computed

as if the employee had retired on a disability retirement as of the date of

death. In particular, a spouse receives 55 percent of the higher of:

• an annuity computed under the general formula based on the deceased

  employee's high-three average salary and length of service to date of death,

  including credit for unused sick leave.

• a "guaranteed  minimum" which is the lesser of 40 percent of the

  employee's high-three average salary or the regular CSRS annuity obtained after

  increasing the deceased employee's length of service by the period of time

  between the date of death and the date he or she would have turned 60.

Survivor benefits to the spouse of a deceased CSRS-Offset employee are the

same as the benefits payable upon the death of an employee with full CSRS

coverage until and unless the survivor becomes eligible for Social Security

survivor benefits. In particular, a surviving spouse who is not entitled to

Social Security survivor benefits continues to receive full CSRS survivor

annuity benefits.

But if the surviving spouse is entitled to his or her own Social Security

benefits, then the surviving spouse receives full CSRS survivor benefits until

he or she becomes entitled to Social Security survivor benefits. This normally

occurs at age 60, unless the spouse is disabled (then it would start at age 50),

or has a minor child (then it would start at any age). Once the spouse becomes

entitled to Social Security survivor benefits, the CSRS survivor annuity is

reduced, or offset, by the amount of the surviving spouse's Social Security

benefit, attributable to the period the deceased was under CSRS-Offset. Consider

this example:

Sam, a CSRS Offset employee, died suddenly at age 61 with 25 years of

CSRS Offset service. His wife Helen is entitled to a CSRS survivor annuity of

$35,000. Helen is age 60 is entitled to her own Social Security benefit of

$10,000 of which $5,000 was earned while Sam was a CSRS Offset employee. Helen's

survivor annuity will be reduced by $5,000 resulting in her receiving a survivor

annuity of $30,000 and an annual Social Security benefit of

$10,000.

An annuity to the surviving spouse of an employee begins on the day after the

employee's death. The exception is the case of a surviving spouse whose

entitlement to a survivor annuity depends on the birth of a posthumous child. In

this case, the benefits begin on the day after the child is born. 

A survivor annuity to a widow or a widower ends on the last day of the month

in which he or she: (1) dies; or (2) remarries prior to age 55. For remarriages

occurring after January 1, 1995, if the widow or widower remarried before age 55

and was married for at least 30 years to the individual on whose service the

survivor annuity is based, the survivor annuity will not be terminated.

A survivor annuity that ended because of remarriage before age 55 may be

restored if: (1) the remarriage ends by death, divorce or annulment; and (2) the

widow or widower pays back any lump sum benefit paid when the annuity ended.

Spousal Survivor Annuity Benefit - Death of an Annuitant

An annuitant is an individual who meets all requirements for retirement and

has applied for retirement (either a regular or a disability retirement) and has

separated from his or her agency employment rolls. But if a former employee did

not file an application for an annuity or was not entitled to an annuity, then

the individual is a separated employee - not an annuitant - and the rules below

do not apply.

A spousal survivor annuity is payable to the spouse of a deceased annuitant

only if the annuitant elected a reduced annuity to provide a reduced annuity to

provide the survivor benefit. To qualify as a surviving spouse of a deceased

annuitant, the individual must be married to the annuitant at the time of the

annuitant's death and must meet one of the following requirements:

• The surviving spouse and the annuitant must have been married for at least

  nine months. The aggregate time of all marriages between the spouse and the

  annuitant is counted to determine the total length of the marriage; or

• A child was born of the marriage. For this purpose, a child includes: (1) a

  child born posthumously to the deceased annuitant and spouse; (2) a child born

  to the deceased annuitant and spouse before they were married; and (3) a child

  of a prior marriage between the deceased annuitant and spouse (an adopted child

  is not a child born of the marriage); or

• The death of the annuitant was accidental

A surviving spouse may receive only one CSRS survivor annuity based on the

service of one employee. But a surviving spouse may receive more than one

survivor annuity benefit based on the service of more than one employee;

however, a surviving spouse may not receive survivor annuities based on

the  service of more than one individual if any of the survivor annuities:

(1)  was based on a marriage that occurred after the employee retired; or

(2)  has been reinstated after the surviving spouse remarried before age

55. Consider the following three examples:

Example 1.

Allen and Joan were married for 10 years while Allen was a CSRS-covered

employee. Allen died in service and Joan received a CSRS survivor annuity. When

Joan became age 55, she married Carl who was a CSRS-covered employee at the time

of their marriage. Two years later, Carl dies in service. Joan is entitled to

both CSRS annuities.

Example 2.

Same facts as in Example1 except that Joan married Carl when she was age 50.

Joan can receive only one of the two survivor annuities (her choice).

Example 3.

Same facts as in Example 1 except that both Allen and Carl were retirees

rather than employees at the time of their marriages. Joan would have to choose

one of the two survivor annuities

A court order awarding a former spouse a survivor annuity prevents OPM from

paying the surviving spouse the portion of the annuity awarded by the court

order. But the surviving spouse -if otherwise eligible - remains eligible for

the complete survivor annuity if and when the former spouse loses

eligibility.  

The maximum possible survivor annuity is 55 percent of the (employee)

annuitant's before it is reduced by the cost of the survivor benefit, the

unreduced annuity. The general formula for computing the cost of the survivor

annuity under CSRS is:

2.5% of the first $3,600 of the annuity plus 10% of the

remaining "base".

The "base" is something an annuitant would choose. If the annuitant chooses

the maximum survivor benefit, the "base" is equal to the annuitant's annuity at

the time of retirement. Consider this example:

Annuitant's annuity at the time of

retirement = $60,000
Cost of survivor annuity = (2.5% of $3,600) + 10% of

($60,000 minus $3,600)
= $90 + $5,640 = $5,730

The annuitant receives $60,000 - $5,730 =

$54,270

If the annuitant were to die during the first year and before the first COLA,

then the surviving spouse receives:

55% of $60,000 = $33,000

If an annuitant were to live and receive the first COLA (in January following

the year of retirement), then both CSRS annuity and survivor annuity is adjusted

by the same COLA. For example, if the first COLA is 2%, then the annuitant will

receive:

[$60,000 + (.02 x $60,000)]

minus $5,730, or $61,200 minus $5,730 = $55,470

If the annuitant were to die during that year then the surviving spouse

receives:

55% of [$60,000 = (.02 x

$60,000)] or 55% of $61,200 = $33,660

Every COLA the annuitant receives will increase the survivor annuity by the

same percentage. Upon death of the annuitant, the initial annuity paid to the

survivor will include all previous COLAs that had been granted to the annuitant.

The survivor annuity will also be increased by all future COLAs.

A survivor annuity payable to the spouse of a deceased CSRS-Offset annuitant

is computed in the same manner as a survivor annuity payable to the spouse of a

deceased annuitant with full CSRS coverage. The amount of survivor annuity

payable to the spouse of a deceased CSRS-Offset annuitant may be reduced if the

spouse is eligible for Social Security survivor benefits. This is based on the

deceased's federal service covered by Social Security. Consider these examples.

Example 1.

Steve, age 61, was a CSRS Offset employee and is retired. He is currently

receiving a CSRS annuity of $70,000. At age 62, his $70,000 annuity will be

reduced, or offset, by $10,000 which is the amount of Social Security retirement

that he earned as a CSRS-Offset employee. His wife Pam does not have 40 credits

of Social Security. If Steve were to die this year, Pam would receive 55 percent

of $70,000 minus the Social Security offset of $10,000.

Example 2.

Same facts as Example 1, except that Pam paid into Social Security during

her entire career and is entitled to Social Security benefits of $12,000 at age

62, or $16,000 at age 66. If Steve were to die, Pam would receive a full CSRS

survivor annuity benefit equal to 55% of $70,000. Pam could elect to receive her

Social Security benefits- with no offset - at any time after she is age 62. Note

that Pam is not subject to either the Windfall Elimination Provision or the

Government Pension Offset.

If Social Security survivor benefits (based on the deceased annuitant's

federal service under Social Security) are payable: (1) the surviving spouse

receives full CSRS survivor benefits until he or she becomes entitled to Social

Security survivor benefits. This normally occurs at age 60. But survivor

benefits may begin before age 60 if the surviving spouse is disabled or has a

minor child in care; (2) when the spouse becomes entitled to Social Security

survivor benefits, the CSRS survivor annuity is reduced (offset) by the amount

of the survivor's Social Security benefit attributable to the period the

deceased annuitant was under CSRS Offset.

The offset of a CSRS survivor annuity stops on the date the survivor loses

eligibility for Social Security benefits due to any of the following reasons:

1. the survivor becomes eligible for a Social Security benefit based on his or

   her earnings under Social Security and the benefit exceeds the survivor Social

   Security benefit:

2. the survivor remarries before age 60; to

3. the Social Security benefit stops because a minor child is reaches age 16

   and the survivor is under age 60.

A CSRS survivor annuity payable to a surviving spouse begins on the day after

the death of the annuitant and ends on the last day of the month preceding

the  month in which the survivor annuitant dies or remarries before age 55.

This will be the case if remarriage is after Jan. 1, 1995. If the widow or

widower remarries before age 55 and was married at least 30 years to the

individual on whose service the survivor annuity is based, then the survivor

annuity will not be terminated.

A survivor annuity that is terminated because of remarriage before age 55 may

be restored if: (1) the remarriage is later terminated by death, annulment or

divorce; and (2) if the spouse pays back any lump-sum benefit that was paid upon

the termination of the annuity. Consider this example.

Barbara was 51 when her husband, William, a CSRS annuitant died. Barbara

began receiving a survivor annuity. At age 54 she married Stanley and as a

result her CSRS survivor annuity stopped. But when Stanley died when Barbara was

age 60, she was then entitled to receive the survivor annuity based on William's

federal service.

In applying for a survivor annuity, the surviving spouse must:

1. complete the application for death benefits (form SF 2800 which can be

   downloaded from OPM's Web site at www.opm.gov)

   and attach any other forms and/or evidence as the application or circumstances

   require;

2. attach a certified copy of the employee's death certificate; and

3. attach a certified copy of the employee's and spouse's marriage certificate.

   In the case of a deceased employee, the completed application should be sent to

   the deceased employee's employing agency. In the case of a deceased annuitant,

   the completed application should be sent to OPM's retirement office  in

   Boyars, PA. The address is:

Office of Personnel Management
PO Box 45
Boyars, PA

16017-0045

About the Author

Edward A. Zurndorfer is a Certified Financial Planner and Enrolled Agent in

Silver Spring, Maryland. He is also a registered representative with

Multi-Financial Securities Corporation (Branch A9X), member FINRA/SIPC, also

located in Silver Spring, Maryland